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Over The Counter Stocks

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BUSINESS
April 30, 1987 | Associated Press
The Midwest Stock Exchange said it was notified Wednesday that it won Securities and Exchange Commission approval to become the first exchange to trade over-the-counter stocks. Midwest officials said May 18 would be the initial session for trading 25 OTC stocks on an unlisted basis on the exchange floor. The SEC gave unanimous approval Wednesday, the exchange announced. "We've been gearing up for it," said spokesman Jack Queeney. "We've got all the equipment and lines in place."
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BUSINESS
July 7, 2002 | TOM PETRUNO, TIMES STAFF WRITER
Say this much for America's embattled corporate executives: They have managed to resurrect the public's interest in penny stocks. Securities regulators fought a hard campaign in the 1990s to turn people away from the market for penny stocks, a term that generally refers to shares trading for less than $5. Regulators argued that the stocks were too risky for most people and were highly vulnerable to manipulation by crooked traders.
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BUSINESS
March 21, 1992 | From Times Staff and Wire Reports
SEC Accuses Firm of Fraud: The Securities and Exchange Commission accused a brokerage firm of manipulating a stock and defrauding investors in at least 13 states, including California, while selling securities by telephone. In a civil lawsuit, the SEC accused Stratton Oakmont Inc. of Lake Success, N.Y., and five current or former employees of making at least $11 million by manipulating the stock of one company.
BUSINESS
September 15, 1999 | From Bloomberg News
2TheMart.com's volatile shares fell Tuesday for a second day after the Nasdaq market said the Irvine company's stock may be removed from the OTC Bulletin Board. The company's shares dropped 7%, or 63 cents, to $8.13 after tumbling 25% on Monday, when Nasdaq said 2TheMart doesn't meet the Bulletin Board's filing requirements. The stock could be excluded Oct. 8. The Internet auction site developer's stock symbol was changed from TMRT to TMRTE.
BUSINESS
September 8, 1989 | From Associated Press
An admitted penny stock scam artist, wearing a hood to conceal his identity, told a House subcommittee Thursday that penny stocks traded over the counter are often controlled by organized crime. Lorenzo Formato, a former broker and promoter of the inexpensive but highly risky securities known as penny stocks, testified that "organized crime has their hand on the shoulder of someone inside any (over-the-counter) brokerage that's making money."
BUSINESS
October 17, 1989 | PAUL RICHTER, TIMES STAFF WRITER
Friday's stock plunge and Monday's rebound struck the nation's market trading system with technical snafus and trading delays but spared it the kind of chaos that prompted panicked calls for reform after the October, 1987, crash. In the face of the heaviest trading volume in two years, computerized equipment went on the fritz at the American Stock Exchange and the National Assn. of Securities Dealers. Delays were reported in the trading of over-the-counter stocks and in options on stock indexes.
BUSINESS
September 18, 1991 | From Associated Press
In a step toward integrating the nation's financial markets, some stocks traded in the electronic over-the-counter market will be bought and sold on three stock exchanges beginning in early 1992. The National Assn. of Securities Dealers is completing work on a system for cross-market trading, nearly six years after federal regulators ordered the OTC market to make its stocks available on exchanges.
BUSINESS
March 21, 1995 | SCOT J. PALTROW, TIMES STAFF WRITER
Moving to preempt a threat of more drastic federal reforms, the Nasdaq stock market on Monday unveiled what it described as sweeping changes designed to give small investors better prices when they buy or sell over-the-counter stocks. The core of the plan is a new computerized system for handling small customer orders, dubbed Aqcess.
BUSINESS
May 26, 1994 | SCOT J. PALTROW, TIMES STAFF WRITER
A new study strongly suggests that the nation's brokerage firms collude with each other to rig over-the-counter trading and ensure themselves artificially high trading profits at the expense of investors. The study by two business professors examined price data for the stocks of 100 large companies traded on the Nasdaq market for over-the-counter stocks, and is believed to be the first to examine such price data in great detail.
BUSINESS
January 28, 1991 | TOM PETRUNO
Every time the over-the-counter stock market rallies with any conviction, untold numbers of analysts hold their breath and wonder: Could this finally be it --the start of small stocks' climb out of their eight-year depression? During the past two weeks, small stocks have jumped significantly as investors have shaken off their worst fears about the Persian Gulf War. The National Assn. of Securities Dealers' composite index of over-the-counter stocks is up 10.3% since Jan. 15.
BUSINESS
October 9, 1998
Struggling General Automation Inc. said its common stock, which was delisted from the American Stock Exchange after the company failed to meet minimum trading requirements, is scheduled to begin trading over the counter today. The stock's new symbol is GAUM. The market makers are Troster-Singer and Sharp Capital, the company said. General Automation, a provider of software support services, last traded on May 20, when the stock closed at 81 cents a share, on the Amex.
BUSINESS
July 31, 1998 | Bloomberg News
Commodity Futures Trading Commission Chairwoman Brooksley Born on Thursday promised to consult Congress before imposing any new regulations on the huge over-the-counter derivatives market. The guarantee expands on the agency's recent offer not to propose or impose new OTC regulations before Congress reconvenes in January.
BUSINESS
June 6, 1998 | Bloomberg News
The Treasury Department, Federal Reserve Board and Securities and Exchange Commission proposed legislation to keep the Commodity Futures Trading Commission from moving to regulate over-the-counter derivatives, which are used by companies to hedge risk. The CFTC, citing a desire for legal certainty in the $28-trillion OTC derivatives market, said last month it would consider whether to start regulating these contracts between corporations.
BUSINESS
December 10, 1997 | From Associated Press
The group that runs the Nasdaq stock market is considering whether to remove about 3,400 small-company stocks from special over-the-counter listings as the nation's second-largest stock market tries to distance itself from tiny speculative stocks. Stock fraud frequently involves low-priced shares of such high-risk stocks, sometimes called penny stocks, that are thinly traded and loosely regulated. Two Nasdaq sources confirmed Tuesday that the board of the National Assn.
BUSINESS
April 17, 1997 | THOMAS S. MULLIGAN, TIMES STAFF WRITER
In one of the largest securities arbitration judgments ever, a Pasadena physician won a $10-million punitive damage award against four principals of the defunct penny-stock brokerage Stratton-Oakmont Inc. Philip M. Aidikoff, attorney for Dr. F. Clark Gardner, said he believes it is the largest punitive award that an individual investor has ever won in an arbitration case before the National Assn. of Securities Dealers.
BUSINESS
March 21, 1995 | SCOT J. PALTROW, TIMES STAFF WRITER
Moving to preempt a threat of more drastic federal reforms, the Nasdaq stock market on Monday unveiled what it described as sweeping changes designed to give small investors better prices when they buy or sell over-the-counter stocks. The core of the plan is a new computerized system for handling small customer orders, dubbed Aqcess.
BUSINESS
August 14, 1991 | GREGORY CROUCH, TIMES STAFF WRITER
The Securities and Exchange Commission won a record judgment Tuesday against Orange County's so-called "penny stock king" David D. Sterns, including more than $12 million in restitution and a lifetime ban from ever running another publicly traded company. Once an accountant for Arthur Andersen & Co.
BUSINESS
October 15, 1991 | PATRICE APODACA, TIMES STAFF WRITER
The ailing American Stock Exchange has proposed a new set of lower monetary guidelines for smaller companies that would put the Amex in head-to-head competition with the NASDAQ over-the-counter market, the thriving breeding ground for young, less financially secure companies. The new guidelines, proposed last month by the Amex, are subject to Securities and Exchange Commission approval, which the Amex hopes to win by early next year.
BUSINESS
May 26, 1994 | SCOT J. PALTROW, TIMES STAFF WRITER
A new study strongly suggests that the nation's brokerage firms collude with each other to rig over-the-counter trading and ensure themselves artificially high trading profits at the expense of investors. The study by two business professors examined price data for the stocks of 100 large companies traded on the Nasdaq market for over-the-counter stocks, and is believed to be the first to examine such price data in great detail.
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